Dunfermline Athletic moved into second place but had to come from behind twice to see off Stenhousemuir 3-2 at East End Park.
Kevin McKinlay and Darren Smith both had Stenhousemuir in front only for Dunfermline to hit back through, firstly, Shaun Byrne and then Ryan Wallace from the penalty spot.
Allan Smith then scored in injury-time to give Dunfermline all three points.
Arbroath drew 2-2 at home to East Fife in a game that saw the away side finishing with nine men after late red cards for Scott McBride and Gary Thom.
After a goalless first half, Alan Cook scored his ninth of the season to put Arbroath in front.
But East Fife hit back and a Liam Buchanan double put his side in front with 14 minutes left. The Methil side's joy was short-lived, however, as Lee Erwin equalised with a penalty.
Forfar beat Brechin City 2-0 to climb into the top half of the table.
Dale Hilson struck six minutes from half-time to put them in front and Chris Templeman almost scored a second early in the second half but Graeme Smith saved well.
Ross Campbell settled it with the second goal three minutes from time.
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